Casinos suffer worst year on record
August 12, 2009
CARSON CITY – Nevada casinos suffered their worst year on record in the fiscal year ending June 30, with total gaming win finishing 13.7 percent below the previous year.
Frank Streshley, chief of tax and licensing at the Gaming Control Board, said the $10.8 billion statewide win is the lowest total in five years. Three of those previous years , he said, raked in more than $12 billion.
In fact, the largest previous drop in fiscal year win was 2002, following 9/11, when gaming win fell 3.7 percent compared to the previous year.
As a result, Budget Director Andrew Clinger said gaming tax collections, which make up 30 percent of revenue to the state general fund, are already $2.17 million short of the projections used to build this fiscal year’s budget.
The area hardest hit was Mesquite in southern Nevada, where win fell 18.9 percent.
That was followed by Lake Tahoe’s South Shore, with a 17.4 percent drop for the year, but Streshley said the South Shore’s problems are more complex than just the economy. South Shore win was down just 8.9 percent the first six months of the year but fell dramatically – 27.3 percent – the second six months. The difference, he said, was the opening of the Red Hawk Indian casino on Highway 50 near Placerville. Total win for the South Shore over the year was just $263.9 million.
Recommended Stories For You
The Carson Valley area, which includes valley portions of Douglas County, saw a 9.9 percent drop for the year to $105.9 million in winnings. It was Carson’s third straight year of declining win.
North Shore casinos reported a 16.8 percent decline for the year to just $31.5 million. That follows a 13.2 percent drop the year before for a total reduction in casino win of 30 percent over two years.
Streshley said two-thirds of total statewide win came from slot play – $7.2 billion. The remaining $3.5 billion was from game and table play.
Altogether, gamblers wagered a total of $147.1 billion – $118.7 billion in slots and the $28.4 billion on games. Those totals were down 10 percent and 8 percent respectively.
The Las Vegas Strip was down 15.3 percent to $5.7 billion in win, its lowest total in four years.
The picture was worse in Washoe County which, like Tahoe’s South Shore, is competing with major Indian casinos in California. Washoe County total win fell 13 percent to $867.2 million, the lowest win reported there in 15 years.
The June numbers that finished the fiscal year mirrored the rest of FY2009, with total win down 13.8 percent from the previous June. Total win was $949.3 million, with nearly all reporting areas in double digit decline.
The gaming win on the South Shore for June was down 15.1 percent from the previous June. Reno was down 6.2 percent, North Lake Tahoe was down 16.1 percent and the region that includes Carson City and the Carson Valley was down 15.6 percent.